Q: I was medically retired in 2004 and subsequently got a GS job covered under FERS. Most of my pay comes from the VA in the form of disability compensation, but a about $100 comes from DFAS as retired pay. I want to make a military deposit and apply my military time to my FERS. I realize I will need to waive that $100 worth of retired pay, but when? Can I make my military deposit now to avoid paying anymore interest, but wait until I am ready for FERS retirement to waive the military retirement pay? Or does the waiver have to occur along with the military deposit? I already have an estimate of earnings. I would greatly appreciate some specific direction from here.
A: You may make the deposit immediately; however, you don’t have to waive your military retired pay until you file your paperwork to retire from your civilian job.